Talent shortage is reducing contractor availability

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Dive Brief:

ISN's Contractor Management Strategy Survey found that a shortage of skilled workers is a "top challenge" for companies looking to hire contractors in the next 12-18 months.

The survey also found that 42% of companies plan to increase outsourcing, and 8 times more companies expect to use more contractor work as opposed to less, using them to complete 40-100% of on-site work.

The surveyed companies also said the lack of competent contractors posed a "significant risk" to operations.

Dive Insight:

While the survey's findings are troubling, there also seems to be a divide between companies that believe outsourcing is a good way to streamline a supply chain and companies that believe more work should be done in-house.

The surveyed companies clearly think outsourcing to contractors is the best way to move forward, but they're also concerned over a lack of competent or skilled workers, which suggests the opposite is true. It's no secret that manufacturing companies are increasingly near-shoring their operations or moving operations in-house, which implies confidence in the current economic climate and workforce.

Boeing is one recent example: as the aerospace manufacturer moves more operations in-house, the company is also looking to pare its contractor roster — all in pursuit of streamlining its supply chain.

Whether seeking a full-time job or contract work, there's a definite market for a skilled workforce. That's true whether you're a company seeking off-shoring, near-shoring or in-house opportunities. If talent needs aren't met, it could mean relocation or AI takes over more jobs.